Course: Entrepreneurship for

Engineers

Target group: 5th year Civil Engineering
students.

By Moti M. (MSc)
 Chapter One

Introduction to
Entrepreneurship
 Chapter Overview
 Introduction to Entrepreneurship

 What is Entrepreneur, entrepreneurship

 The role of innovation and entrepreneurship
 The commercialization process
1.1. Meaning of an entrepreneur and
Entrepreneurship
What is an entrepreneur?
• Entrepreneur refers to a person who establishes
his/her own business to making profit.
• Entrepreneur is a combination of the thinker and
doer.
• Entrepreneur is the owner of the business who
enjoys the position of an employer.
• Entrepreneurs are instruments of change.
• Entrepreneurs take the risks necessary in
producing goods & services.
 Kinds of Entrepreneurs:
1. Innovating entrepreneurs are characterized by
small of innovativeness. It sense new ideas, new
technology, discovering new markets and creating
new organizations.
2. Adaptive(imitative) entrepreneurs are characterized
by readiness to adopt successful innovations
inaugurated(introduce) by successful innovating
entrepreneurs.
 Characteristics of Entrepreneurs:
Need for achievement
Willingness to Take risks
Self Confidence
Innovation
Desire for responsibility
Desire for immediate feedback
High level of energy
Future orientation
Skilled at organizing
 Concept of Entrepreneurship
 The term ‘entrepreneur’ and ‘entrepreneurship’
the two sides of the same coin, conceptually they
are different.
While ‘entrepreneur’ refers to a person,
‘entrepreneurship’ refers to the function.
 Entrepreneurship is the process of creating
something new with value by devoting the
necessary time and effort.
 Entrepreneurship is the set of activities performed
by an entrepreneur
 Entrepreneurship is the dynamic process of
creating incremental wealth.
 Entrepreneurship is a human creative act.
 Benefits of Entrepreneurship
 Create your own destiny
 Make a difference
 Reach your full potential
 Reap impressive profits
 Contribute to society and to be recognized for
your efforts
 Drawbacks of entrepreneurship

 Limited resource:-mostly starts from small

investment
 Lack of experience:- most of entrepreneurs have
no experience and this may lead to inefficiency
 Disagreement between member: if the owner of
entrepreneur is more than one person, disagreement
between them can be created. This disagreement
can limit the operation of the business.
 Uncertainty of income:- opening and running a
business provide no guarantee that an entrepreneur
will earn enough money to survive
 Ten Deadly Mistakes of Entrepreneurship
a) Management mistakes
b) Lack of experience
c) Poor financial control
d) Weak marketing efforts
e) Failure to develop a strategic plan
f) Uncontrolled growth
g) Poor location
h) Improper inventory control
i) Incorrect pricing
j) Inability to make the “entrepreneurial transition”
 Putting Failure into Perspective
• Entrepreneurs are not paralyzed by the prospect
of failure.
• Failure – a natural part of the creative process.
• Successful entrepreneurs learn to fail
intelligently.
 Avoiding the Pitfalls of
Small Business Failure
 Know your business in depth
 Develop a solid business plan
 Manage financial resources
 Understand financial statements
 Learn to manage people effectively
 Keep in tune with yourself
 Creativity and Innovation
What is creativity?
 Creativity is thinking new things
 Creativity is the ability to develop new ideas and to
discover new ways of looking at problems and
opportunities.
What is innovation?
 Innovation is doing new things
 Innovation is the ability to apply creative solutions to
those problems and opportunities in order to enhance
people’s lives or to enrich society
 Entrepreneurship = creativity + innovation
• Commercializing or extracting value from ideas
From Creativity to
Entrepreneurship
 Four Distinct Types Of Innovation
• Invention -creation of a new product, service
or process
• Extension - expansion of a product, service or
process
• Duplication -replication of an already existing
product, service or process
• Synthesis - the combination of existing
concepts and factors into a new formulation
 Pillars Of Innovation
1. Product Innovation:-involves the introduction of a
new goods/services that is substantially improved.
2. Process Innovation:- involves the implementation of
a new improved production or delivery method.
3. Marketing Innovation:-development of new
marketing methods with improvement in product
design or packaging ,product promotion or pricing.
4. Organizational innovation(social innovation):-
involves the creation of new organizations or business
practices
5. Business Model Innovation:-involves changing the
ways of business is done in terms of capturing value.
 Forms of Entrepreneurship
 Individual Entrepreneur: An individual who started,
acquired, or franchised his or her own independent
organization
 Intranpreneur:- who does entrepreneurial work within
large organizations. In large organizations, the top
executives are encouraged to catch hold of new ideas and
then convert them into products within the framework of
organizations.
 Entrepreneurial Organization:- An organization can
create an environment in which all of its members can
contribute in some fashion to the entrepreneurial function
 Anyone – regardless of age, race, gender,
color, national origin, or any other
characteristic – can become an entrepreneur.
 
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